1. Technical Field of the Invention
This invention relates generally to systems and methods for processing of prepaid cards and more particularly to processing expiration dates for prepaid cards.
2. Description of Related Art
Many consumers lack access to a credit card or are without a banking account. Prepaid cards are one solution for such consumers. Prepaid cards are funded with a specific monetary value at issuance and can be used similarly to credit cards to purchase goods and services and to access cash with the funded monetary value.
Different types of prepaid cards are currently offered in the marketplace. For example, one type of prepaid card is a “stored value prepaid card”. A stored value prepaid card is issued by an issuer to a cardholder and is enrolled under the cardholder's name. The stored value prepaid card is prefunded by the cardholder with a specific monetary value. The stored value prepaid card may be reloadable with additional funds by the cardholder that is added to the balance of the card or alternatively, may be non-reloadable or disposable, such that additional funds cannot be added to the balance of the card. Stored value prepaid cards are advantageous for consumers who are unable to obtain a credit card or do not want a credit card but still want the convenience of being able to purchase goods and services and access cash without the use of checks.
Another type of prepaid card is an “open system prepaid card” such as a payroll prepaid card. Payroll prepaid cards are provided by employers to compensate employees. The employee is issued a card that permits access to an account established by the employer. Each pay period, the employee's earned funds are automatically loaded onto the card and available on payday—similar to direct deposit. The payroll prepaid card may also be used to pay bonuses or other compensation to employees. A payroll prepaid card is particularly useful for employees who do not have a regular checking or savings account. Commercial entities may also want to use an open system prepaid card for non-employees as well, such as to provide payments to vendors, pay insurance claims, provide emergency disaster relief, loyalty programs, annuities and customer refunds. In addition, consumers may want to provide an open system prepaid card for a third party. For example, parents may want to provide their children with an open system prepaid card such that the parents may control the funds spent with the prepaid card.
Another type of prepaid card is a “closed system prepaid card” and is commonly known as a “gift card”. A merchant offers customers a gift card to be purchased for a fixed amount or provides a gift card to customers as an incentive. The gift card is then pre-funded with the specific dollar amount and can only be used at the merchant that provided the card. The merchant may register the name of the cardholder when the gift card is provided to the customer. Generally, gift cards are not reloadable.
Other types of prepaid cards are also available, such as Government Prepaid Cards, Travel prepaid cards, etc. Each type of prepaid card is pre-funded with a specific dollar amount and may be either reloadable or non-reloadable.
To provide prepaid cards to a customer, an issuer first establishes a prepaid card program with a prepaid card processing system. The issuer communicates certain default prepaid card program options and services to a prepaid card processing system for processing and storage. Then, any prepaid card issued by the issuer under the prepaid card program is configured with the default options by the prepaid card processing system. These default options may not be customized for a specific customer or order. Since the customer or issuer has no flexibility in overriding the default options determined at the prepaid card program level, these default options may not be customized for a specific customer or order. However, with so many different types of customers and uses for a prepaid card, more flexibility may be desired by the issuer and/or customer, especially with respect to the expiration options for a prepaid card. Therefore, a need exists for a more flexible prepaid card processing system that is operable to process customized expiration options for prepaid cards.